Correlation Between Piscines Desjoyaux and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux and Groupe Sfpi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Piscines Desjoyaux and Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piscines Desjoyaux SA and Groupe Sfpi, you can compare the effects of market volatilities on Piscines Desjoyaux and Groupe Sfpi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Piscines Desjoyaux with a short position of Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and Groupe Sfpi.
Diversification Opportunities for Piscines Desjoyaux and Groupe Sfpi
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piscines and Groupe is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi and Piscines Desjoyaux is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Piscines Desjoyaux SA are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Piscines Desjoyaux and Groupe Sfpi
Assuming the 90 days trading horizon Piscines Desjoyaux SA is expected to generate 0.57 times more return on investment than Groupe Sfpi. However, Piscines Desjoyaux SA is 1.76 times less risky than Groupe Sfpi. It trades about 0.12 of its potential returns per unit of risk. Groupe Sfpi is currently generating about -0.15 per unit of risk. If you would invest 1,185 in Piscines Desjoyaux SA on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Piscines Desjoyaux SA or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piscines Desjoyaux SA vs. Groupe Sfpi
Performance |
| Timeline |
| Piscines Desjoyaux |
| Groupe Sfpi |
Piscines Desjoyaux and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piscines Desjoyaux and Groupe Sfpi
The main advantage of trading using opposite Piscines Desjoyaux and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piscines Desjoyaux position performs unexpectedly, Groupe Sfpi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Groupe Sfpi will offset losses from the drop in Groupe Sfpi's long position.| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Trigano SA | Piscines Desjoyaux vs. Groupe Guillin SA |
| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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